KAR, AN And KMX, Pushing Specialty Retail Industry Downward

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 3 points (0.0%) at 14,977 as of Monday, May 6, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,675 issues advancing vs. 1,221 declining with 157 unchanged.

The Specialty Retail industry currently sits up 0.1% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Netflix ( NFLX), down 0.93, and Luxottica Group ( LUX), down 0.40. A company within the industry that increased today was Staples ( SPLS), up 0.96.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. KAR Auction Services ( KAR) is one of the companies pushing the Specialty Retail industry lower today. As of noon trading, KAR Auction Services is down $0.39 (-1.7%) to $23.10 on average volume Thus far, 264,041 shares of KAR Auction Services exchanged hands as compared to its average daily volume of 689,800 shares. The stock has ranged in price between $23.01-$23.45 after having opened the day at $23.26 as compared to the previous trading day's close of $23.49.

KAR Auction Services, Inc., together with its subsidiaries, provides vehicle auction services in North America. It operates in three segments: ADESA Auctions, IAA, and AFC. KAR Auction Services has a market cap of $3.1 billion and is part of the services sector. The company has a P/E ratio of 32.3, above the S&P 500 P/E ratio of 17.7. Shares are up 16.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates KAR Auction Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full KAR Auction Services Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

2. As of noon trading, AutoNation ( AN) is down $0.43 (-0.9%) to $45.20 on light volume Thus far, 131,905 shares of AutoNation exchanged hands as compared to its average daily volume of 606,400 shares. The stock has ranged in price between $45.10-$45.66 after having opened the day at $45.62 as compared to the previous trading day's close of $45.63.

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. AutoNation has a market cap of $5.5 billion and is part of the services sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 14.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates AutoNation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full AutoNation Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

1. As of noon trading, CarMax ( KMX) is down $0.24 (-0.5%) to $45.99 on light volume Thus far, 365,343 shares of CarMax exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $45.93-$46.43 after having opened the day at $46.22 as compared to the previous trading day's close of $46.23.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. CarMax has a market cap of $10.3 billion and is part of the services sector. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates CarMax as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full CarMax Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
null